Hi Members,
Please suggest on the following query. A proprietorship firm (non-audited) has unsecured loan of Rs. 4 lacs in 2017-18. Can repayment of loan in this case be done in cash?
Thanks
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 24 January 2019
Yes, if repayment of loan is to a bank registered under banking regulation act.
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 24 January 2019
Well in that case repayment in cash above 20,000/- is not allowed